Partner Article

Employee ownership back on the agenda

A consultation has been launched on providing new tax reliefs to encourage employee ownership, following last year’s Nuttall Review.

Marking the first ‘national employee ownership day,’ the Business Secretary laid out the plans to a conference in London.

Deputy Prime Minister Nick Clegg has been keen on the idea of employee ownership, but the Nuttall Review has since been muddied by the Government’s separate “rights for shares” scheme which would see workers surrender certain working privileges for shares in their employer.

Today’s announcement includes the publication of a joint government and industry guidance document that will provide pointers for businesses that want to move to an employee ownership model.

Mr Clegg said: “The benefits of employee ownership are clear. Staff who have a stake are more motivated and are rewarded for thinking in the long-term. That’s good for business and good for families, as it means lower absenteeism and lower levels of staff turnover.

“That’s why from next April, the government has set aside £50 million each year to give businesses and employees an incentive to adopt employee owned models. We’ll be providing Capital Gains Tax relief for those who sell a controlling stake in a company to their staff.

“Giving hard-working people a real stake in their company is a hugely underused tool in unlocking growth. This straightforward new guidance will help firms of all sizes realise their potential, boosting staff motivation and laying the foundations for growth.”

The number of co-operatives in the UK has risen steadily over the last five years and UK Cooperatives estimate the sector has grown by more than 20% since the start of the recession in 2008.

David Cameron has indicated his intention to introduce a Co-operatives Act to the statute book by 2015, which would consolidate existing co-operative legislation.

The London Conference forms part of ‘Co-operatives Fortnight’ which is intended to showcase the Cabinet Office’s progress in delivering public service mutualisation.

This was posted in Bdaily's Members' News section by Tom Keighley .